January 30 2003, 12:31

Russian sugar companies opposing changes

Sugar traders intend to ask Russian government not to change the regime of raw sugar imports and the system of quotas. According to the Head of Russian union of sugar producers (Soyuzrossakhar) Yuri Mikhailov, proposals about sugar market regulation in 2004 were discussed at the union's meeting on January 29. Companies within Soyuzrossakhar, which controls about 80 percent of Russian sugar market, voted for leaving the current auction system of quotas distribution and current range of customs duties intact.

Ministries of Agriculture and for Economic Development had previously declared that in 2004 this system would be cancelled. Thus, Russian Minister of Agriculture Aleksey Gordeyev said last week that the auction-based system of distributing raw sugar import quotas would be removed in 2004.